RBI caps FIs' non-gilt debt exposure at 10%
Mumbai: The Reserve Bank of India (RBI) has issued the final norms for investment in non-government debt securities by financial institutions (FIs) and put a ceiling of 10 per cent of FIs' total investment in debt securities. While these guidelines will come into force with effect from April 1, 2004, the FIs have been given a transition period to comply with the norms considering the time required by the issuers of debt securities to get their existing unlisted debt issues listed on the stock exchanges, RBI said in a notification here on Tuesday.

"The FIs may invest until March 31, 2004, in the existing unlisted securities, which were issued on or before November 30, 2003," the RBI said. The FIs must invest only in rated debt securities, which carry a minimum investment grade rating from a rating agencies. "Investment in units of mutual fund schemes where the entire corpus is invested in non-government debt securities will be outside the purview of the above guidelines till December 31, 2004; thereafter, such investments will also attract these guidelines."
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ICICI Bank, Mohun Bagan in a tie-up
Kolkata: ICICI Bank has entered into an agreement with India's premier football club, Mohun Bagan Athletic Club, to bring out a co-branded credit card, reports suggest. The card, christened ICICI Bank-Mohun Bagan Visa Card, will come to the market from January 26, 2004. The agreement has recently been signed between ICICI Bank's credit cards division and United Mohun Bagan Football Team.

While ICICI Bank is the first bank in India to launch a credit card jointly with a football club, ICICI Bank - Mohun Bagan Visa Card will be the third card of its kind in the world.
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Rajnidhi Finance merged with Indian Rayon unit
Mumbai: Indian Rayon and Industries Ltd has informed the Bombay Stock Exchange that pursuant to the approval of the scheme of amalgamation by the High Court of Gujarat at Ahmedabad, effective January 7, Rajnidhi Finance Ltd, a subsidiary of Laxminarayan Investment Ltd (subsidiary of the company), is amalgamated with Laxminarayan Investment Ltd from the appointed date, that is, April 1, 2003.
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IndusInd Bank net profit spurts 210% in Q3
Mumbai: An increase in the profit of sale of investments helped IndusInd Bank register a 210 per cent jump in net profit at Rs 77.09 crore for the third quarter ended December 31, 2003, up from Rs 24.83 crore in the corresponding period of the previous year.

The bank's total income increased to Rs 259.41 crore from Rs 237.83 crore, as total expenditure decreased to Rs 144.28 crore from Rs 152.71 crore, says a press release from the bank. While the net interest margin (i.e., interest earned minus interest expended) was steady at Rs 55.55 crore (Rs 55.77 crore), other income, mainly profit from sale of investments, jumped 63 per cent to Rs 92.77 crore (Rs 56.80 crore). Income on investments fell a tad to Rs 68.53 crore (Rs 69.10 crore).
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